The Maldives Inland Revenue Authority (MIRA) has reported a notable increase in revenue collection for June 2025, with total collections reaching MVR 2.63 billion. This represents a 27 percent rise compared to June 2024 and surpasses the projected revenue by 10.4 percent.
According to MIRA, the uptick is largely due to stronger collections from the tourism sector, particularly from Tourism Goods and Services Tax (TGST), Green Tax, and Tourism Land Rent. A 13.1 percent rise in tourist arrivals in May 2025 compared to the previous year significantly boosted these categories. Additionally, higher Green Tax rates introduced from January 2025 and revised Airport Taxes and Fees effective from December 2024 also contributed to the gains.
GST remained the top contributor to total revenue in June 2025, accounting for 36.5 percent. It was followed by Income Tax (24.1 percent), Tourism Land Rent (15.3 percent), Green Tax (6.2 percent), Airport Development Fee (5.1 percent), and Departure Tax (5.1 percent). In terms of foreign currency earnings, TGST brought in 33.1 percent of the USD revenue, with Tourism Land Rent and Income Tax following at 22.5 percent and 15.5 percent respectively.
Importantly, 16.7 percent of the monthly revenue was generated through the recovery of outstanding dues, which played a key role in exceeding forecasts. This suggests improved enforcement and compliance efforts on MIRA’s part.
Year-on-year comparisons also show that June 2025 outperformed the same month in 2024 across both tax and non-tax revenue categories. Tax revenue rose to MVR 2.36 billion from MVR 2.07 billion, while non-tax revenue increased from MVR 531.7 million to MVR 740 million.
Refunds and adjustments were also significant in June 2025. Income Tax categories accounted for the bulk of these adjustments, with over MVR 192 million adjusted and more than MVR 331 million refunded. This reflects continued recalibration following the shift from the now-abolished Business Profit Tax regime to the current Income Tax framework.
Overall, the June figures indicate a solid mid-year performance for the government’s revenue streams, bolstered by tourism, taxation reforms, and debt recovery mechanisms. However, the increased reliance on tourism-related income and one-off collections such as land acquisition and conversion fees may raise questions about the long-term sustainability and diversification of revenue sources.
